Bitcoin Price Surges 50% or More After Key Events Align, Fed Signals Favorable – Upcoming Powell Speeches Could Boost

Bitcoin price rallies are often influenced by investors’ inflation concerns and economic growth data, but specific signals for an upcoming rally are rare. However, a combination of factors has historically coincided with Bitcoin price surges of 50% or more. Significant rallies occur when US Federal Reserve policy expectations ease, crypto market leverage is low, and strong retail data supports bullish momentum. Recent instances of these events aligning saw Bitcoin’s price surge from $40,000 to $73,500 in early 2024, from $16,700 to $25,100 in early 2023, and a 76% increase in July 2021. In early 2024, Bitcoin experienced an 84% gain over seven weeks due to low perpetual futures funding rates, strong retail sales data, and signals of a tighter monetary stance from Fed Chair Jerome Powell. Similarly, in early 2023, a 50% rally was triggered by a surge in funding rates and positive retail sales data. A 76% rally in 2021 was influenced by an increase in the Bitcoin funding rate and surprising retail sales data. The common thread in these rallies is a reduction in expectations for an expansionary Fed policy and low initial leverage demand from Bitcoin bulls. Monitoring upcoming speeches from Fed Chair Powell and key economic data releases will be crucial for predicting Bitcoin’s next potential upswing. This article is for informational purposes only and should not be construed as legal or investment advice.

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